2nd Jun 2025 11:56
(Alliance News) - Stock prices in London were mixed at midday on Monday, as uncertainty persists in the UK manufacturing sector.
Also, recent comments by US President Donald Trump lowered sentiment over the weekend. Trump said Friday that he would double steel and aluminium import tariffs to 50% from next week, and claimed that Beijing has "totally violated" a recent deal with the US to de-escalate tariffs.
"Donald Trump has upset markets once again," commented AJ Bell's Russ Mould. "Doubling import taxes on steel and aluminium, and aggravating China once again, mean we face a situation where uncertainty prevails. Trump's continuous moving of the goal posts is frustrating for businesses, governments, consumers and investors.
"Equity markets were down across Europe and Asia, with futures prices implying a similar pattern when Wall Street opens for trading on Monday. Unsurprisingly, gold got a boost as investors returned to safe-haven assets."
The FTSE 100 index was up 0.65 points at 8,773.03. The FTSE 250 was down 33.69 points, 0.2%, at 20,994.32, and the AIM All-Share was up 0.65 points, 0.1%, at 747.33.
The Cboe UK 100 was down 0.2% at 871.61, the Cboe UK 250 was down less than 0.1% at 18,556.19, and the Cboe Small Companies was down 0.1% at 16,735.30.
"The defence sector was in demand ahead of the UK government setting out its plans to protect the country and support allies," Mould said. "Babcock, BAE Systems and Rolls-Royce were among the stocks in positive territory as investors targeted an industry with a clear earnings tailwind."
Babcock led the FTSE 100 around midday, up 8.2%. BAE Systems was up 1.8% while Rolls-Royce gained 0.4%.
Mould continued: "The revolving doors of the London Stock Exchange span fast as investors were treated to a plethora of demerger and delisting news. Anglo American spun off its platinum interests while Indivior said it would wave goodbye to the London market." Anglo American was up 0.50 points while Indivior lost 1.4%.
Vodafone was down 0.6% on the FTSE 100, despite completing the merger between Vodafone UK and Three UK.
The Newbury, England-based telecommunications company has combined its UK business with Three UK, a subsidiary of CK Hutchison Holdings Ltd, combining the business into VodafoneThree. Vodafone holds 51% of the combined business.
The merger follows a shaky year for Vodafone, which swung to a loss in financial 2025, despite a marginal improvement in revenue.
Games Workshop gained 0.5% after announcing its appointment of Neil Tomlinson as group operations director.
Tomlinson has worked for the Warhammer owner since 2018, his positions having included head of merchandise planning and operational manufacturing & supply chain director.
On the FTSE 250, ME Group International rose 2.3%.
The Surrey, England-based vending machine operator said pretax profit increased by around 14% on-year and revenue by around 2% in the six months that ended April 30, "driven by the strong continued performance in our laundry business".
Bridgepoint lost 1.3% despite saying it is reintroducing its share buyback programme to take advantage of current market volatility.
The London-based private equity firm said the buyback, worth up to GBP50 million, will start on Monday and is expected to be completed by May 31 next year.
On AIM, Eagle Eye lost 36%.
The London-based software-as-a-service marketing solutions company said Neptune Retail Solutions has, with effect from August 2, terminated a contract worth between GBP9 million and GBP10 million in annual revenue.
It explained that the contract was to provide digital promotional services to a national US grocer, and that NRS in 2023 acquired digital promotions and content provider Quotient Technology Inc.
"The board is confident that this change has no impact on the group's growth opportunities, which remain strong," Eagle Eye said.
In UK news, the UK manufacturing economy remained in contraction territory in May, numbers on Monday showed, amid weak global demand and turbulent market conditions.
The S&P Global UK manufacturing purchasing managers' index picked up to 46.4 points in May, from 45.4 in April, though it remained below the 50-point neutral mark. The reading topped the 45.1 point flash estimate and S&P Global said it has signalled a deterioration in performance for each of the past eight months.
"Weak global market conditions, trade uncertainty, low customer confidence and cost pressures resulting from recent increases to UK employer [national insurance contributions] and minimum wages also contributed to clients' reluctance to spend," S&P Global said.
In European equities on Monday, the CAC 40 in Paris was down 0.8%, while the DAX 40 in Frankfurt was down 0.6%.
The pound was quoted at USD1.3535 at midday on Monday in London, up compared to USD1.3476 at the equities close on Friday. The euro stood higher at USD1.1415, against USD1.1348. Against the yen, the dollar was trading lower at JPY142.85 compared to JPY144.23.
Stocks in New York were called lower. The Dow Jones Industrial Average was called down 0.4%, the S&P 500 index down 0.5%, and the Nasdaq Composite down 0.7%.
The yield on the US 10-year Treasury was quoted at 4.44%, widening from 4.41%. The yield on the US 30-year Treasury was quoted at 4.97%, widening from 4.92%.
Brent oil was quoted higher at USD64.81 a barrel at midday in London on Monday from USD62.53 late Friday.
Gold was quoted higher at USD3,347.93 an ounce against USD3,286.33.
Still to come on Monday's economic calendar, the US has manufacturing PMI data.
By Emma Curzon, Alliance News reporter
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